Business Models

I think that YouTube is a good comparison here. I continue to think it is a violation of SEC rules that Google doesn’t report YouTube costs, but it’s safe to assume that video costs a fair bit to serve; that has certainly come down over time, of course, but it’s more than text. Because YouTube has an advertising model, however, the costs of serving... See more

On the other hand — and I hope I conveyed this in the Article — I really do think that OpenAI has seriously erred by not aggressively building out an advertising model. Google and Meta are years ahead of OpenAI in this regard, which lets them compete with ChatGPT using cash flow today; OpenAI is promising revenues in the future, but from what?... See more